Remittances - important resource for socio-economic development

06/02/2024 12:02

The increasing inflow of remittances to Vietnam over the years has increased the foreign currency reserve while helping enterprises expand production and business, thus creating an impetus for socio-economic development, according to economists. Remittances totaling 16 billion USD in 2023

 The State Bank of Vietnam (SBV) said Vietnamese abroad sent home 16 billion USD in 2023, a year-on-year surge of 32.5%. Of the total figure, Ho Chi Minh City received 8.92 billion USD, up 35% from the previous year.

Experts attributed the rise to the relaxed immigration control and health measures in many countries in the post-COVID-19 period that resulted in an increase in the number of Vietnamese people working abroad.
Besides, despite formidable challenges posed by high inflation rates, overseas Vietnamese (OVs) in the UK, the US, Canada and Europe sent remittances home to support their families.
Experts held that remittances not only help improve the domestic livelihoods but also serve as an important financial resource for the country’s economic development. Therefore, with a view to attracting this capital, credit institutions should work to better their transfer and receipt services.
Over the past time, many Vietnamese commercial banks have cooperated with nearly 1,000 banks across 100 countries and territories to promote international connectivity and payment. They particularly focus on markets with a large number of Vietnamese people such as the US, Australia, Canada, Japan and the Republic of Korea.
Facilitating OVs’ investment
According to Chairman of the Business Association of OVs Peter Hong, around 5.5 million Vietnamese reside in 130 countries and territories across the globe. Many people aged from 60 and businessmen and intellectuals want to come back home to live or make investment there.
Meanwhile, Chairman of the Vietnam Archive Business Association Dinh The Vinh said that remittances have emerged as an important resource of external development finance, without which the economy will face difficulties. He added that it is necessary to create favourable conditions for OVs to invest in the homeland such as allowing them to buy houses in the country.
He also suggested that the amount of remittances will further increase if more high-quality workers are sent overseas.
Laying stress on the significance of remittances, Dr. Nguyen Tri Hieu, a finance-banking expert, said the State should provide full and clear information on investment opportunities in Vietnam, and ensure favourable healthcare, security and visa procedure, among others, for OVs.
As for those getting remittances from their relatives, they should be encouraged to set aside a part of the money for investment in Vietnamese projects, he added./.
Source: VNA
 



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